2QFY21: Bearing The Full Brunt Of The MCO
MyNews’ 2QFY21 results disappointed expectations on the back of a longer-drawn MCO yoy, which weighed heavily on sales and the product mix. A combination of losses with its JV and FPC as well as MyNews’ high operating leverage caused MyNews to fall deep into losses. While we believe this is the bottom for MyNews, we still expect it to realise losses over the near term. Maintain SELL given MyNews’ lofty valuations and extremely challenging headwinds. Target price of RM0.72 remains unchanged.